Research paper on ethics

Category: Education

Presentation Description

No description available.


Presentation Transcript

Research paper on ; : 

Research paper on ; Ethics & Its Importance In Modern Business Scenario Prepared by; Ashish kumar.R

Abstract : 

Abstract The word Business Ethics itself is a contradictory one. In the era of global changes, sustainable existence gets priority over short term gains. This paper tries to highlight the pre-conditions of ethics in a business unit and also the importance of cultivating a culture of ethics in organization.

Objective of the study : 

Objective of the study The aim of the study is to understand ‘Ethics & Its Importance In Modern Business’ specific aspects to be studied were ; Factors Affecting Employee Ethics. Is Ethics A Management Discipline. Reasons For Not Being Ethical . Obstacles In Ethical Conduct.

Methods Of Data Collection : 

Methods Of Data Collection In the initial phrase the data's are from secondary sources. The major sources are ; Research journals and surveys. Business magazines, Internet……

Introduction : 

Introduction Ethics Basically ethics refer to the rules and principles that define rights or wrong conduct. It also relate to the social rules that influence people to be honest in dealing with others. Definition Ethics is the study of moral obligations involving the distinction between right and wrong. R.M.Kidder

Slide 6: 

Business Ethics “Business Ethics is generally coming to know, what is right or wrong in the workplace and doing what is right – this regards to the effects of products or services and in relationships with stake holders” - CARTER MCNAMARA

Contd…………….. : 

Contd…………….. Business operations include variety of activities to be carried out. These activities pertain to various issues in the organization. The process of decision making involved in these activities faces tremendous challenges in the form of dilemma. The confusion of “What is Acceptable & What should be Acceptable” leads to variety of dilemma in the mind of persons connected with the business operations.

Factors Affecting Employee Ethics : 

Factors Affecting Employee Ethics Whether a person acts ethically or unethically when faced with an ethical dilemma is the result of complex interactions between: 1) Stage of moral development 2) Individual characteristics 3) Organizations structural design 4) Organizations culture 5) Intensity of ethical issue

Factors Affecting Ethical & Unethical Behavior : 

Factors Affecting Ethical & Unethical Behavior Moderators Individual Characteristics Issue Intensity Structural Variables Organizational Culture Ethical Dilemma Stage of Moral Development Ethical Unethical Behavior

Stages of Moral Development : 

Stages of Moral Development There are three levels of moral development. Pre-conventional – At this level, persons choice between right and wrong is based on personal consequences involved such as physical punishment, reward. Conventional – Indicates that moral values reside in maintaining expected standards and living up to the expectations of others. Principled – Individuals make a clear effort to define moral principles apart from the authority of the groups to which they belong or society in general.

Individual Characteristics' : 

Individual Characteristics' Every person joins an organization with a relatively entre-nched set of values. Our values developed at young age fromparents,teachers,friends-represent basic conviction about what is right or wrong.Two personality variables found to influence an individu-als action are: EGO STRENGTH LOCUS OF CONTROL

Contd…….. : 

Contd…….. Ego strength- is the personality measure of the strength of a persons convictions. Individuals high in ego strengths are more likely to do what they think is right. People with high ego strengths are more consistent in their moral judgments and moral actions. Locus of Control reflects the degree to which people believe they control their own fate. People with internal LOC believe that they control their own fate and people with external LOC believe that what happens to them is due to luck or chance.

Structural Variables : 

Structural Variables An organizations structural design influences whether employees behave ethically. Some structures provide strong guidance, whereas others create ambiguity and uncertainty.Organizational mechanism that influence ethics include performance appraisal systems and reward allocations procedure.

Contd……. : 

Contd……. When employees are evaluated only on outcome they may be pressured to do" whatever is necessary” to look good on outcome variables and not be concerned with how they got results. The danger is that if managers toke a more lenient view of unethical behaviors for successful employees. other employees will model their behavior.

Organization’s Culture : 

Organization’s Culture A organizational culture most likely to encourage high ethical standards is one that is high in risk tolerance, control and conflict tolerance. Employees in such a culture are encouraged to be aggressive and innovative, are aware that unethical practices will be discovered and feel free to openly challenge expectations they consider to be unrealistic or personally undesirable.

Is Business Ethics A Management Discipline? : 

Is Business Ethics A Management Discipline? Ethics acts as the character of any business house. It is very much essential for a business organization to follow business ethics as the firm has to survive with in the society. Values like honesty, integrity, truthfulness, sincerity, fairness and many others are very much required for a business house to progress. The reason for this is that the only way a business house can build goodwill is by following ethics.

Contd….. : 

Contd….. In this scenario the entire world has turned into a Global Market, it is important to every organization to follow ethics. If Profit is the Heart of a business house, Ethics are the Veins keeping the heart going on. Business houses, adopting such two faced principle seldom succeed as they loose out on good ethics and principles, thus resulting into a bad reputation. A good well run business must have high and consistent standards of ethics.


REASONS FOR NOT BEING ETHICAL Pressure from above: Even if a subordinate feels that the work assigned to him is unethical, he is compelled to do the work due to pressure. Ambiguous situations: There is absence of clear-cut ethical guidelines due to which, at times, managers are faced with the situations that are ethically ambiguous.

Contd…. : 

Contd…. Comparative conceptual disparity: Managers argue that the relationship between them and the top management is such that they cannot question the instructions issued to them.  Personal Benefits If a person follows ethics, he faces monetary loss as compared to not following ethics. This tempts the person to adopt unethical means.

Contd….. : 

Contd….. Government Policies The complicated and ambiguous government policy is yet another reason why people develop unethical means like tax evasion and bribery.  To reduce expenses Ethical way results to higher expenses thus reducing the business profits. As the main aim of starting a business house is to earn profits, the reduction in expenses tempts the business house to adopt unethical means.


OBSTACLES IN ETHICAL CONDUCT Lack of management support Even though an employee wishes to be ethical, he may not do that as the higher authorities do not permit him to do so.  Company politics To survive the internal company politics, an employee may adopt unethical means for better incentives or higher post.

Contd…… : 

Contd…… Insufficient resources When a company is going through a crisis, it may adopt unethical means to save resources. Personal financial worries Sometimes, the salary given to employees may prove less to meet the financial expenses. Due to this, they adopt unethical means of earning money.

Contd…….. : 

Contd…….. Little or no recognition of achievements When the employee is not being acknowledged for his ethical behavior, he may resort to unethical means.   Need to meet sales, budget or profit goals When any employee has a goal or a task to achieve, in case of the task resulting into failure, he might adopt unethical ways for job accomplishment.

Findings of the study : 

Findings of the study It guides to make right decisions that affect employees, shareholders, investors and the organization. After the setting up of Consumer Courts, business ethics have become a topic of concern because business has come to realize that unethical activities by management can cost business in many ways. The distinctly visible line between ethical and unethical activities helps to decide what a firm should do. There are many laws and court decisions defining the right and the wrong facilitating more for better ethical values.

Suggestions : 

Suggestions Hire individual with high ethical standards Establish codes of ethics and decision rules Lead by example Performance Appraisal Mechanism Ethics Training Support to individuals facing ethical dilemmas

Conclusion : 

Conclusion The question of relevance of ethics in a business unit has been a matter of controversy for the very nature of business activities so far. But in the competitive age of business units to sustain, ethical issues to play a prominent role in the world. In the Indian environment also this applies with equal importance.

Contd……. : 

Contd……. Business ethics need to be converted, from a contradictory task into a compatible task for business operations. Its importance has got to be known to the business houses. Indian business houses must be taken away from the state of confusion to a state of clarity and be made fully committed to the practice of ethics into their business operations.

Bibliography : 

Bibliography References 1) Business Ethics And Corporate Governance. -- Dr.Ahmad Abad 2) Ethical Issues In Management -- Verma Ajay For Commonwealth Publishers 3) Mc Grawhill Educations Management -- issued on 2008-2009

Slide 29: 

Websites [email protected]

Slide 30: 


authorStream Live Help